Intra-community supply of cars: VAT-free sales in the EU
Intra-community supply of used cars explained: conditions for VAT exemption, valid VAT numbers, proof of transport, invoices and EC sales lists.
· 8 min read
An intra-community supply lets a dealer sell a VAT-qualifying car to a business in another EU country without charging VAT. Under Article 138 of the VAT Directive, four conditions must all be met: the buyer is a taxable person, has given you a valid VAT number from another member state, the car physically leaves your country, and you report the sale in your recapitulative statement. Margin-scheme cars are excluded.
Intra-community supply: when can a car be sold without VAT?
A car can be sold VAT-free to an EU dealer when it is a VAT-qualifying car and every condition of Article 138 is met. The rule is the same in all member states because it comes from the VAT Directive 2006/112/EC, transposed into national law (for example § 4 No. 1b and § 6a UStG in Germany).
The four conditions:
- Taxable buyer. The car is supplied to another taxable person, or a non-taxable legal person acting as such, in another member state (Article 138(1)(a)).
- Buyer's VAT number. The buyer is identified for VAT in a member state other than the one where transport begins and has indicated this VAT number to you (Article 138(1)(b)).
- Transport to another member state. The car is dispatched or transported out of your country to another EU country, by you, the buyer or a carrier for either of you.
- Recapitulative statement. You report the supply correctly in your EC sales list; otherwise the exemption does not apply unless you can justify the shortcoming (Article 138(1a)).
Conditions 2 and 4 became substantive conditions with the 2020 "quick fixes" (Directive 2018/1910). Before 2020, many countries treated a missing VAT number or a late EC sales list as a formal error; today they can cost you the exemption.
Which cars qualify: VAT-qualifying, not margin
Only cars that are taxed normally can be sold as an intra-community supply. Article 139(3) states that the exemption does not apply to goods taxed under the margin scheme. A margin car sold to a dealer in another country stays a margin car: you invoice gross, pay VAT on your margin at home and the buyer pays no VAT on arrival.
Typical VAT-qualifying stock includes ex-lease, ex-rental and company cars sold by businesses that deducted VAT on purchase. Their VAT status follows from how the previous owner bought them, so ask before you quote a net price.
A special case is a car under six months old or with up to 6,000 km. It is a "new means of transport" and can be sold VAT-free even to a private buyer in another member state, who then pays VAT at home (Article 138(2)(a)).
For car dealers
Know your margin before you buy
MyCarDealer compares any car from an auction or listing with the market in your country and shows the net margin after VAT, transport and costs – and the maximum bid.
Request accessChecking the buyer's VAT number
The buyer's VAT number must be valid at the time of supply, and you must be able to show that you checked it. Use the European Commission's VIES service and enter your own VAT number as the requester so that the reply contains a consultation number; keep it with the deal file.
If VIES shows the number as invalid, do not invoice without VAT. Either charge your domestic VAT or hold a deposit equal to the VAT until the buyer's tax office has corrected the record. Our step-by-step VIES VAT number check covers what to do in each case.
Proof that the car left your country
You must be able to prove that the car physically arrived in another member state. Since 2020, Article 45a of Implementing Regulation 282/2011 creates a presumption of transport if you hold enough independent evidence:
- You arrange transport: at least two non-contradictory documents issued by two different parties independent of you and the buyer, for example a signed CMR plus bank proof of paying the carrier or the transport insurance policy.
- The buyer arranges transport: additionally, a written statement from the buyer confirming arrival, the date and place, and for vehicles the VIN, delivered to you by the tenth day of the month following the supply.
National proofs remain available where the presumption is not met, such as the German Gelangensbestätigung. Cars driven away by the buyer are the riskiest case; see proof of intra-community delivery for the details.
Invoice requirements and deadline
An intra-community supply needs an invoice issued no later than the fifteenth day of the month following the supply (Article 222). Under Article 226 it must show, among other details:
- your VAT number and the buyer's VAT number;
- the VIN, make, model and the date of first registration;
- the net price with no VAT;
- a reference to the exemption, for example "VAT-exempt intra-Community supply, Article 138 Directive 2006/112/EC", or the national equivalent.
The full list with sample wording is in our guide to the cross-border car invoice.
Reporting the sale in the EC sales list
Every intra-community supply must appear in your recapitulative statement under Articles 262 to 264. It lists, per buyer, the buyer's VAT number and the total value of supplies in the period.
The standard period is the calendar month, filed within one month (Article 263(1)). Member states may allow quarterly statements only while intra-community supplies of goods stay at or below €50,000 per quarter (Article 263(1a)). With car prices, that limit is usually passed after two or three sales, so most exporting dealers file monthly. Make sure the period matches the one in which the VAT became chargeable and that the VAT number is exactly the one on the invoice.
A worked example
According to listings tracked by MyCarDealer in October 2026, the median asking price of a 2021–2022 BMW X3 diesel was €30,990 in Belgium (34 listings) and €33,890 in Germany (54 listings). A Belgian dealer selling a VAT-qualifying ex-lease X3 to a German dealer would:
- Check the German buyer's VAT number in VIES and save the consultation number.
- Invoice €24,000 net with the Article 138 reference and the buyer's VAT number.
- Keep the CMR signed on delivery, the carrier's invoice and the bank record of paying it.
- Report €24,000 under the buyer's VAT number in the Belgian EC sales list.
The German dealer declares an intra-community acquisition, pays German VAT of €4,560 and deducts it in the same return; see reverse charge on used cars. For the buyer, whether €24,000 net is a good price depends on his expected selling price in Germany, VAT on the full price and his costs. MyCarDealer calculates that margin from current listings in the buyer's own country; you can check one car with the free valuation.
What happens in an audit
If one condition fails, your tax office can charge you domestic VAT on the sale, usually as if the price you received included VAT. On a €24,000 sale in Belgium that is €24,000 × 21/121 = €4,165 out of your margin.
Good faith protects you only if you took every reasonable step. The Court of Justice held in Teleos (C-409/04) that a supplier who acted in good faith and could not have detected the buyer's fraud should not be made to pay the VAT. In Mecsek-Gabona (C-273/11) it held that the exemption cannot be refused solely because the buyer's VAT number was cancelled retroactively. But where the supplier knew or should have known of fraud, the exemption can be refused; Germany writes this into § 25f UStG.
Keep one file per car: contract, invoice, VIES consultation number, transport documents, buyer's statement, payment from the buyer's own business account and the EC sales list entry.
Frequently asked questions
When can a car be sold to an EU dealer without VAT?
When the car is VAT-qualifying, the buyer is a business with a valid VAT number from another member state, the car is transported out of your country and you report the sale in your EC sales list. All four conditions of Article 138 must be met.
Can a margin-scheme car be sold as an intra-community supply?
No. Article 139(3) of the VAT Directive excludes margin-scheme goods from the exemption. You invoice the margin car gross, account for VAT on your margin at home, and the buyer does not pay VAT on arrival.
What happens if the buyer's VAT number is not valid?
Then you cannot zero-rate the sale. Charge your domestic VAT or keep a VAT deposit until the buyer's number shows as valid in VIES. Invoicing VAT-free to an invalid number exposes you to the full VAT if you are audited.
Which proof of transport does the seller need?
Ideally two documents from two different independent parties, such as a signed CMR and bank proof of paying the carrier, which create a presumption of transport under Article 45a of Regulation 282/2011. If the buyer transports the car, you also need his written arrival statement with the VIN.
Does the sale have to be reported in the EC sales list?
Yes. Since 2020, a correct recapitulative statement is a condition for the exemption under Article 138(1a). Most car dealers must file monthly, because the quarterly option ends once supplies exceed €50,000 in a quarter.